Guest Speaker: Kathryn L. Pascale, CHMM Topic: “Learn How the New Federal and State Regulations for Lead Paint, Mold and Chinese Drywall Will Effect Your Business”

1. NEW REGULATIONS FOR LEAD PAINT, MOLD INSPECTIONS & CHINESE DRYWALL PRESENTED BY KATHRYN L. PASCALE MICROBIOLOGIST AND PRESIDENT OF C.H.M.M. INC. ENVIRONMENTAL INSPECTIONS AND IAQ LABORATORY

2. NEW REGS FOR 2010(Already in Effect) EPA RENOVATION, REPAIR AND PAINTING (RRP) RULE HUD/CPSC INTERIM GUIDANCE FOR CHINESE DRYWALL INSPECTIONS FLORIDA’S MOLD INSPECTION AND REMEDIATION LAWS

4. EFFECTIVE APRIL 22, 2010

5. REQUIRES ALL WORK DONE ON PRE 1978 HOMES THAT DISTURBS PAINTED SURFACES TO BE CONDUCTED BY EPA CERTIFIED RRP CONTRACTORSEPA’S RENOVATION, REPAIR & PAINTING PROGRAM (RRP) RULE

8. REPAIRS

9. MAINTENANCE work

10. ELECTRICAL

11. PLUMBING

12. CARPENTRY

14. ANYONE RECEIVING COMPENSATION INCLUDing RENT and MANAGEMENT FEES

15. PROPERTY MANAGERS AND THEIR EMPLOYEES

17. LEAD ABATEMENT PROJECTSSTILL NEED AN EPA CERTIFIED LEAD-BASED PAINT ABATEMENT CONTRACTOR Much Higher standard of training

18. REASON BEHIND RRP LAW STILL AN UNACCEPTABLY HIGH NUMBER OF CHILDREN in u.s. WITH ELEVATED BLOOD LEAD LEVELS (EBLL)

19. REASON BEHIND RRP LAW EPA AND HUD EXPECTED TITLE X TO SIGNIFICANTLY REDUCE EBLL BY ALERTING PARENTS TO THE PRESENCE OF LEAD-BASED PAINT IN THE HOMES THEY WERE BUYING OR RENTING

20. TITLE X REFRESHER EFFECTIVE 1996 SELLER, landlord OR their REPRESENTATIVE MUST PROVIDE PROSPECTIVE BUYER OR Renter WITH EPA PAMPHLET “PROTECT YOUR FAMILY FROM LEAD IN THE HOME’ MUST PROVIDE 10 DAYS FOR A LEAD INSPECTION MUST GET WRITTEN CONFIRMATION THAT Buyer/RENTER READ PAMPHLET AND UNDERSTANDS LEAD hazards IF THEY CHOOSE NOT TO OBTAIN INSPECTION

23. ENFORCEMENT FINES FOR NON-COMPLIANCE UP TO $32,500 PER DAY PER VIOLATION WILL EVENTUALLY BE ENFORCED THROUGH LOCAL BUILDING DEPARTMENTS

24. WHAT MUST BE DONE ? FIRMS AND WORKERS MUST BE EPA CERTIFIED TO CONDUCT ANY RRP WORK Workers MUST BE TRAINED IN LEAD SAFE PRACTICES BY AN EPA CERTIFIED TRAINING PROVIDER Must recertify every 5 years

25. WHAT MUST BE DONE ? Notification of occupants MUST USE LEAD-SAFE WORK PRACTICES THAT MINIMIZE OCCUPANT’S EXPOSURE TO LEAD DUST PROPERLY Clean & POST RRP verification

27. WRITTEN CONFIRMATION THAT OCCUPANT RECEIEVD PAMPHLET

28. RETAIN RECORDS FOR 3 YEARS

30. PROHIBITION OF METHODS THAT PRODUCE LEAD DUST OR FUMES (DRY SANDING, SCRAPING, HEAT GUNS, BURNING)

31. POWER TOOLS MUST HAVE HEPA EXHAUST CONTROLS

32. Worker PPE (RESPIRATORS, PROTECTIVE CLOTHING) WORKPLACE CLEANING AND VERIFICATION PROPER DISPOSAL of waste

33. COSTS WILL ADD SUBSTANTIAL COSTS TO ALL PRE-1978 RENOVATION, REPAIR, PAINTING AND MAINTENANCE JOBS Fewer contractors available for work on pre 1978 homes MANY CONTRACTORS ARE CHOOSING TO AVOID OLDER HOMES rather than assuming the costs of maintaining epa certified workers

35. HOUSING FOR THE ELDERLY OR DISABLED (UNLESS CHILDREN UNDER 6 RESIDE OR ARE EXPECTED TO RESIDE THERE)

36. HOUSING OR COMPONENTS DECLARED LEAD-FREE BY AN EPA CERTIFIED LEAD BASED PAINT INSPECTOR OR RISK ASSESSOR(Not the RRP contractor AND NOT homeowners WITH TEST KITS)

38. Rrp COMPONENTS MAY NOT HAVE ANY LEAD

39. EITHER WAY, DON’T NEED TO PAY FOR AN EPA CERTIFIED CONTRACTOR

40. CAN USE ANY CONTRACTOR AS LONG AS YOU CAN PROVIDE LEAD-FREE REPORTLBP INSPECTION EXEMPTION

42. OTHER ADVANTAGES OF LBP INSPECTION REPORT UNLIKE OTHER HOME INSPECTIONS, Lbp INSPECTION reports ARE GOOD FOREVER ALL FUTURE RRP WORK WILL BE EXEMPT CAN INCREASE VALUE OF PROPERTY CAN BE USED LATER TO MEET TITLE X DISCLOSURE REQUIREMENTS WHEN SELLING OR LEASING the property

43. LEAD-BASED PAINT LIABILITY Lately seen an increase in banks requiring LBP inspections on non-government backed loans ALREADY REQUIRED ON FHA AND VA LOANS, ETC. Possibly to limit their liability in a foreclosure Don’t want to own properties with liabilities Insurers also requiring more LBP inspections on multi-family units

44. TO QUALIFY FOR LEAD-FREE EXEMPTION MUST HAVE A “SURFACE BY SURFACE” INSPECTION CONDUCTED BY EPA CERTIFIED INPECTOR OR RISK ASSESSOR (NOT RRP CONTRACTOR) THESE INSPECTIONS ARE CONDUCTED USING AN X-RAY FLUORESCENT SPECTROMETER (xrf) WHICH IS DIRECT READING AND DOES NOT HARM PAINTED SURFACES TO MEET HUD AND EPA GUDELINES EVERY PAINTED SURFACE MUST BE TESTED RESULTS IN HUNDREDS OF READINGS PER HOME

45. PAINT CHIP SAMPLES Can use paint chip samples, but; Every sample must be 2”X 2” and include all layers of paint down to the bare substrate Still must sample all surfaces required by EPA and HUD protocol Means a hundred or more holes all over house No seller will allow that Laboratory fees prohibitive

46. PAINT CHIP SAMPLES Taking a few paint chip samples from hidden areas like closets is not a LBP inspection This is not an EPA /HUD approved LBP inspection Not legal to claim its a LBP Inspection Not acceptable for Title X Disclosure Rule or to obtain RRP Rule Exemption

47. PURPOSE; LIMIT EXPOSURE TO LEAD DUST LEAD PAINT, ESPECIALLY ON FRICTION SURFACES (WINDOWS, DOORS, STAIRS, ETC.) CONTRIBUTE lead particles TO HOUSEHOLD DUST; Rrp ACTIVITIES CAUSE even more DUST DUST IS INGESTED BY HAND TO MOUTH ACTIVITIES ON TOYS, hands AND FOOD

48. HEALTH EFFECTS Neurological damage Developmental Lower IQ Behavioral problems ADD Stunted growth Lead deposits at bone ends where growth occurs Adults Kidney damage High blood pressure Elevated BLL in osteoporosis patients Lead deposited in childhood leaches out and causes lead poisoning

49. MYTHS #1 Lead poisoning only caused by chewing paint chips Most exposure occurs through household dust LBP on wear surfaces settle in household dust Hand to mouth ingestion Children pick up dust from floors on hands and toys

50. MYTHS #2 Only found in low income housing Lead-based paint high quality and expensive Long lasting Resistant to elements Designed to slough off and always look fresh In South Florida More prevalent in Palm Beach mansions than PHA

51. QUESTIONS? LBP

52. HUD/CPSC INTERIM GUIDANCE FOR INSPECTIONS LAWSUIT rulings SETTING PRECEDENTS FOR REMEDIATION CHINESE DRYWALL 2010 DEVELOPMENTS

53. CHINESE DRYWALL BASICS Drywall is made from gypsum Naturally mined or synthetic Synthetic gypsum is made from the byproduct of power plant air scrubbers Original theory was that the problem drywall was made from synthetic gypsum contaminated by power plant fly ash Actually made from naturally mined gypsum Several mines in one area in the Shandong Province These mines have now been shut down

54. SCOPE Between 2005 and 2007 approximately 320 Million Ft2 of drywall was imported into the U.S. from China Most of it was used in Florida, Texas, Louisiana, Alabama and Mississippi But reported as far as Canada and Guam Enough to be in tens of thousands of homes

55. MANUFACTUERERS Knauf Plasterboard (Tianjin) Co. Ltd. TaianTaishan Plasterboard Co. Ltd.Shandong TaiheDongxin Co.Shandong Chenxiang GBM Co. Ltd. (C&K Gypsum Board)Beijing New Building Materials (BNBM)

56. SYMPTOMS Off-gassing volatile sulfur compounds Can produce rotten egg odor Corrosive to bare copper Components like A/C coils, refrigeration lines, copper ground wires, plumbing and electronics have been failing at a higher than normal rate This is the most common symptom of the problem, and the only one that has been scientifically linked to the drywall

57. Copper corrosion on A/C coils A/C coil corrosion

58. HEALTH EFFECTS No data linking off-gassing to health effects Air sampling to date has shown levels of H2S and CS2 to be well below OSHA standards EPA and Florida DOH both currently conducting additional air sampling To determine if anything else in the drywall can be causing the health issues people are claiming

59. CURRENT DATA FDOH and several drywall manufacturers have all done comparison testing on Chinese and domestic drywall Environmental Chamber Testing High heat & relative humidity Chinese drywall produced 2 volatile sulfur gases which the domestic samples did not hydrogen sulfide and carbon disulfide. Also contains compounds not present or present in much lower levels in the domestic samples iron disulfide, strontium sulfide and five organic compounds

60. CAUSE OF OFF-GASSING UNKNOWN None of these tests has determined what the actual component(s) is that is causing the off-gassing Speculation Might be coming from the iron disulfide or strontium disulfide Fumigation materials may be reacting with the organic compounds No one knows right now

61. INTERIM GUIDANCE THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), AND THE U.S. CONSUMER PRODUCT SAFETY COMMISSION (CPSC) HAVE ISSUED A JOINT GUIDANCE DOCUMENT for conducting Chinese drywall inspections

62. INTERIM GUIDANCE TWO PART IDENTICATION METHOD STEP 1: THRESHOLD INSPECTION STEP 2: CORROBORATING EVIDENCE

64. drywall installation date between 2001 and 2008If both criteria are met than go to step 2 STEP 1:THRESHOLD INSPECTION

65. BECAUSE CORROSION CAN BE CAUSED For reasons other than the presence of chinese drywall CORROBORATING EVIDENCE IS REQUIRED FOR HOMES BUILT BETWEEN 2005 AND 2008 NEED TO HAVE 2 OF THE FOLLOWING 6 INDICATORS FOR HOMES BUILT BETWEEN 2001 AND 2004 NEED TO HAVE 4 OF THE FOLLOWING 6 INDICATORS STEP 2: CORROBORATING EVIDENCE

66. 1. PRESENCE OF COPPER SULFIDE IN CORROSION RESIDUE SAMPLE 2. Confirmed markings of chinese origin STEP 2: CORROBORATING EVIDENCE

67. STEP 2: CORROBORATING EVIDENCE 3. Strontium levels >1200PPM in drywall samples 4. Elemental sulfur levels >10PPM in drywall samples

68. STEP 2: CORROBORATING EVIDENCE 5. Elevated levels of hydrogen sulfide, carbonyl sulfide and/or carbon disulfide GASES 6. Corrosion of copper to form copper sulfide when placed in test chamber with drywall sample

69. COMPREHENSIVE INSPECTION The following procedure is based on thE HUD/CPSC guidelines

70. DRYWALL INSPECTIONS CONFIRM DRYWALL INSTALLATION WAS BETWEEN 2001 AND 2008 NEW CONSTRUCTION RENOVATION

72. ALL COPPER PLUMBING COMPONENTS

73. COPPER GROUNDWIRES IN EVERY ROOM

75. DRYWALL INSPECTIONS AIR SAMPLE ANALYSIS FOR PRESENCE OF hydrogen sulfide, carbonyl sulfide and/or carbon disulfide GASES

77. AIR SAMPLING

79. DRYWALL INSPECTIONS WHEREAS CORROSION SAMPLES CAN BE COLLECTED FROM ALL PROBLEM AREAS AIR SAMPLES CAN BE COLLECTED FROM ALL ROOMS THAT HAVE CORROSION BOROSCOPE READINGS CAN BE DONE ANYWHERE THIS COMBINATION GIVES THE MOST CONCLUSIVE RESULTS

80. COMPREHENSIVE INSPECTION Air samples For volatile sulfur compounds H2S and CS2 Collected from inside wall cavity in those rooms with copper corrosion Gases more concentrated Worse case scenario of the health threats present in that particular home

81. DRYWALL INSPECTIONS Origin LABEls Must inspect both ceiling and walls Different specifications for ceiling drywall, ½” Vs 5/8” rarely find Chinese drywall in ceilings even in homes with chinese brands in the walls

82. COMPREHENSIVE INSPECTION LABELS: Visual inspection of attic drywall Boroscopic inspection of wall cavities Check walls in all rooms that have copper corrosion Drywall sometimes clustered by manufacturer as it came off pallets Other times totally random Found every possible scenario From whole house To one sheet in one room

83. LABORATORY ANALYSIS OF DRYWALL Sending a piece of drywall for analysis Strontium and elemental sulfur Costs prohibitive, so usually only one sample taken Results are only for the one piece of drywall sampled Like calling a house lead-free after testing one wall Drywall is a commodity Builder calls supplier and orders by size, thickness, fire rating, etc. Warehouse sends whatever pallets of that spec on hand CHMM Inc. encountered five different brands in one house

84. HOMEOWNER’S LAWSUITS 1ST JURY CASE awarded $2.46 MILLION to Florida couple AGAINST BANNER SUPPLY IN MIAMI The lawsuit alleged that Banner knowingly sold defective drywall to builders BANNER 55% LIABLE KNAUF AND 2 OTHERS have MAUFACTURERS HAVE remainder of liability

85. HOMEOWNER’S LAWSUITS 2010-Federal Judge awards $164,000 to a Louisiana family that filed a Chinese drywall suit against Knauf Knauf is a German Company that imported Chinese drywall Since that ruling, Knauf has begun settling with U.S. builders who bought their drywall

86. HOMEOWMER’S LAWSUITS A FEDRERAL Judge also awarded $2.6 million to 7 Virginia families who filed a suit against Taishan Gypsum Co. company is Chinese; refused to respond to U.S. Courts collecting the settlement is doubtful

87. REMEDIATION MANY BUILDERS hesitating to REMEDIATe due to lack of STANDARDs SOME ARE REMOVING & REPLACING DRYWALL only SOME ALSO REMOVING CORRODED PLUMBING AND WIRING

88. SINCE THE FEDERAL GOVERNMENT HAS NOT DEVELOPED REMEDIATION STANDARDS THE STANDARD SET BY one JUDGE’S RULING WILL essentially BE THE STANDARD It basically says that a home built with tainted drywall must be gutted and rebuilt JUDGE SETS “REMEDIATION STANDARD”

89. MUST REMOVE Drywall INSULATION Electrical wiring Plumbing Molding Cabinets CARPETS

90. FINANCIAL RELIEF Congress requested IRS to allow casualty loss deduction IRS says EPA and CPSC must first determine that Chinese drywall “causes extreme and unusual damage” Congress asked HUD and Treasury for mortgage relief for families who moved out and are also paying rent Nothing done yet Congress asked SBA for disaster relief loans Nothing done yet

91. FINANCIAL RELIEF South Florida Property Appraisers Offices lowering assessed values of affected homes Documented by an insurance claim, letter from builder, lawsuit or inspection report Broward County reduced value of about 400 homes in four subdivisions in Parkland by about 20 percent

92. INSURANCE Homeowners insurance does not cover environmental defects Asbestos Lead-based paint Mold, if not a result of another covered loss like a flood Builders are suing their liability insurers Builders did nothing wrong Drywall meets ASTM Standards Claiming Latent Defects under their liability insurance Insurers won’t pay Have to wait for Judges to decide

93. Communities and Builders Affected by Stigma(not all confirmed to have used Chinese Drywall) Builders Lennar Homes WCI Centerline Homes GL Homes Taylor Morrison Homes North Star Homes Albanese Popkin Development Group South Kendall Construction Corp. Communities Parkland Golf & Country Club Parkland Canyon Isles The Sanctuary The Oaks Heron Bay Sabal Point Vizcaya Banyan Isles Cobblestone Creek Promenade at Tradition-PSL Mariner Villages Townhouses-Stuart Briella Townhomes of Boynton Beach Pine Iles (Keys Gate) Kendall

94. Copper ground wire Heavy corrosion

95. Water heater plumbing No corrosion

96. Laundry plumbing No corrosion

97. Bathroom plumbing Heavy corrosion, but laboratory analysis proved it was oxidation

98. Electric panel ground wires Light corrosion, but laboratory analysis showed heavy sulfur concentration

99. Knauf Tianjin, aka Knauf Plasterboard Tianjin or KPT Knauf is a German manufacturer that has acknowledged importing drywall made in China

100. Photo taken with boroscope ID by company name: National Gypsum Member of the Gypsum Association

101. Photo taken with Boroscope ID by trademark; GridMar is one trademark of National Gypsum Company Member of the Gypsum Association

102. Made in China label No manufacturer

103. ToughRock; Trademark of Georgia Pacific Gypsum Member of the Gypsum Association

104. Questions?

105. EFFECTIVE JULY 1, 2010 MOLD INPECTORS AND REMEDIATORS MUST BE LICENSED BY STATE Must meet educational and experience criteria and Pass an exam Continuing education BIENNIAL LICENSE RENEWAL NEW FLORIDA MOLD REGULATIONS

106. MUST CARRY at least $1 MILLION IN E&O AND LIABILITY INSURANCE Remediation companies can no longer do their own inspections or clearances FINES UP TO $5000 FOR NOn-COMPLIANCE NEW FLORIDA MOLD REGULATIONS

107. HB 713 Dpr WAS charged with developing the licensing criteria BEFORE JULY 2010 Didn’t HAPPEN………. …..so legislature passed hb713 which postpones enforcement of only the licensing requirement UNTIL 2011 ALL OTHER PARTS OF LAW EFFECTIVE 7/1/10

109. Inspectors CANNOT ACCEPT ANY COMPENSATION, INDUCEMENTS OR REWARD FROM A REMEDIATION COMPANY and vice- versaMUST CARRY $1 MILLION IN ERRORS AND EMMISSIONS AND LIABILTY INSURANCE

110. REASON FOR LAW SINCE THERE WERE NO FEDERAL OR STATE OF FLORIDA CERTIFICATION PROGRAMS ANYONE, REGARDLESS OF EXPERIENCE OR EDUCATION COULD CALL THEMSELVES “CERTIFIED”

111. NOW, UNLESS STATE LICENSED, CAN’T CLAIM TITLE OF “CERTIFIED” “REGISTERED” “LICENSED” “PROFESSIONAL” Mold inspector REASON FOR LAW

113. REMEDIATION CONTRACTORS FINDING MOLD PROBLEMS WHERE THERE WERE NO MOLD PROBLEMS

115. INSURED-RECOURSE FOR ERRORS

116. LESS CONFLICT OF INTERESTIMPROVEMENTS

117. NO STANDARDS OF PRACTICE STILL UNDER DEVELOPMENT SO THERE WILL CONTINUE TO BE HUGE DISPARITIES IN INSPECTIONS AND CONTINUED PROBLEMS SUCH AS………….

118. FALSE POSITIVE MOLD REPORTS This continually happens Because most mold inspections are nothing more than air sample inspections Air samples cannot distinguish between Mold spores…………which are NOT the problem And mold growth……... which is the problem

119. MOLD SPORES Vs MOLD GROWTH Mold spores are everywhere In every home Perfectly normal Should be expected Mold growth is the problem Mold growth is a symptom of a moisture problem

120. MOLD SPORES Think of a mold spore like a seed When you add water it sprouts like a seed These sprouts are called hyphae The only way to distinguish between spores with and without hyphae is by direct microscopic examination of samples taken from suspect areas in the home Air samples can not do this

121. MISCELLANEOUS SPORES Typical of an air sample

122. Alternaria sp. Spores and hyphae on tape slide

123. Aspergillus sp. Spores and hyphae on tape slide

124. Stachybotrys sp. Spores and hyphae on tape slide

125. Stachybotrys sp. Spores and hyphae in interstitial wall cavity sample

126. AIR SAMPLE INSPECTIONS Simply compares the indoor spore count with outdoor spore count Inspector takes a few samples indoors and one outdoors Sends samples to a laboratory If indoor spore count is < outdoor spore count Lab report says you passed If indoor spore count > outdoor spore count Lab report says you failed

127. AIR SAMPLE INSPECTIONS The problem with this technique is the spore count outside is tremendously variable; Changes with the season Changes with the weather Even the time of day Example:

128. Monday Tuesday Take indoor sample and outdoor sample Indoor spore count=500 Outdoor spore count=700 Lab report says PASSED Take same two samples After it rained Monday night Indoor spore count=500 Outdoor spore count=200 Lab report says FAILED AIR SAMPLE INSPECTIONS

129. THERE IS NO MOLD PROBLEM But now the buyer has a report that says there is

130. AIR SAMPLE INSPECTIONS Another problem with air sample inspections: Even if you have a legitimate mold growth problem; Air samples don’t tell you Where the mold is growing The extent of the problem Buyer has no idea what it will take to fix the problem Which is exactly what all buyers want to know All they have is a lab report that states a mold problem exits in the house

131. AIR SAMPLE INSPECTIONSFALSE NEGATIVES GROWTH can be present WITHOUT ELEVATED AIR SAMPLE RESULTS Path to lawsuit: PASSED AIR SAMPLE INSPECTION-Typically called a mold screen or limited mold inspection (read fine print) Buyer Moves into new home

132. START RENOVATING FIND MOLD IN WALL CAVITIES, BEHIND BASEBOARDS, BEHIND WALLPAPER SPORES THAT ARE “CONTAINED” in this way DON’T typically SHOW UP IN AIR SAMPLES Must do moisture mapping and surface sampling to find it AIR SAMPLE INSPECTIONSFALSE NEGATIVES

133. MORE SAMPLING TECHNIQUES FOR FALSE POSITIVE MOLD REPORTS Swab Samples Inspector swabs a surface in the home Inserts swab into a vial of growth media Sends vial to laboratory What happens to a spore in growth media? It grows Whether or not it was growing in the home Again the buyer gets a report stating there is a mold problem where none exists

134. COMPREHENSIVE MOLD INSPECTION A mold inspection should include all of the following: Surface samples from all areas of visible mold or water stains Moisture mapping around all doors windows, plumbing and anywhere else water leaks could occur Interstitial samples from those areas where moisture is found Samples from all A/C units Air samples Temperature and Relative Humidity measurements

135. COMPREHENSIVE INSPECTION The report is just as important as the inspection Should include not only the lab results, but also; Conclusions What was found and where Recommendations What needs to be done

136. QUESTIONS?